News Elon Musk’s deal to buy Twitter is in peril

Elon Musk’s deal to buy Twitter is in serious jeopardy, three people familiar with the matter say, as Musk’s camp concluded that Twitter’s figures on spam accounts are not verifiable.

Musk’s team has stopped engaging in certain discussions around funding for the $44 billion deal, including with a party named as a likely backer, one of the people said. The people spoke on the condition of anonymity because of the sensitivity of the ongoing discussions.

Talks with investors have cooled in recent weeks as Musk’s camp has raised doubts about the recent data “fire hose” — a trove of data sold to corporate customers — they received from Twitter. Musk’s team’s doubts about the spam figures signal they believe they do not have enough information to evaluate Twitter’s prospects as a business, the people said.

Now that Musk’s team has concluded it cannot verify Twitter’s figures on spam accounts, one of the people said, it is expected to take potentially drastic action. The person said it was likely a change in direction from Musk’s team would come soon, though they did not say exactly what they thought that change would be.

The spam accounts are not the only reason Musk might try to wriggle out of the deal. Twitter’s share price has fallen dramatically since his takeover bid in April, leading to the impression that he is overpaying. And Musk also runs two other major companies, Tesla and SpaceX, along with some start-ups.

But the terms of the deal mean it wouldn’t be easy for Musk to walk away. Musk has agreed to complete it unless something major happens to Twitter’s business, and legal experts doubt the bot issue would qualify. Twitter, which initially fought Musk’s takeover bid, would be a weaker company if the deal falls apart than when Musk first bought a stake, and experts expect Twitter to fight to get it done. Twitter itself has said it intends to complete the deal. Even if Musk convinces a judge to let him walk away, he could still be on the hook for the deal’s $1 billion breakup fee.

Twitter spokesperson Brian Poliakoff declined to comment, but referred to a statement the company made in June.

“Twitter has and will continue to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement,” Twitter said in the June statement. “We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement at the agreed price and terms.”

Musk shook up the social media world earlier this year with his unprecedented offer to take the company private, arguing he would be able to grow Twitter and make it more open and, in his mind, politically neutral. He said he would let former president Donald Trump back on the service and argued its content moderation practices infringed on free speech. Musk waived his right to take a deeper look at the company’s finances when he signed the deal.

But soon after, questions arose about whether he would actually follow through. A global sell-off in tech stocks deeply cut into his personal net worth, which he had leveraged to get commitments for the debt he needed to buy Twitter.

Musk’s takeover has plunged Twitter into chaos, creating rifts between employees and unease for executives. Some workers, who fear Musk would roll back the safeguards Twitter has put in place to keep harmful content off the site, have started looking for new jobs and have predicted an exodus of employees if the billionaire buys the company.

Musk has already brushed up against Twitter executives by going after the company’s policies on its own site, and amplifying users who criticized the company’s top lawyer.

Even if the deal falls through, Twitter has been dragged through controversy, employee unease and a rocky stock performance for months. Its rebound won’t be straightforward.

“No matter what: The company is in play now,” one person familiar with the matter told The Post in May. “I don’t think it’s a situation where Elon walks away and things can go back to normal.”